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Shipping Companies Fined by FMC

FMC

By MarEx 2015-08-05 15:40:47

Federal Maritime Commission has fined several shipping companies including United Arab Shipping Company (UASC), and several non-vessel operating common carriers (NVOCC) with a total of $1,227,500 in civil penalties.

The penalties were issued after investigations in New York, Seattle and Washington D.C.  The companies were allowed settle the FMC irregularities with fines and not forced to admit to the violations of the Shipping Act and federal regulations.

FMC Chairman Mario Cordero commended the FMC sectors, which brought fines for the infractions of FMC regulations.

The compromise agreements are as follows:

United Arab Shipping Company (S.A.G.)

United Arab Shipping Company (UASC) is a ship operator based in Dubai, U.A.E. The FMC alleged the company violated 46 U.S.C. 41104(1) for unlawfully rebating a portion of the contract rate to its NVOCC customer, Falcon Maritime and Aviation Inc. UASC will pay the FMC $537,500

City Ocean Logistics Co., Ltd., City Ocean International, Inc., and CTC International Inc.

City Ocean Logistics Co., Ltd. Is an NVOCC based in Shenzhen, China; City Ocean International is an NVOCC and freight forwarder based in Diamond Bar, CA; and CTC International is an NVOCC and freight forwarder, which is also located in the same facility as City Ocean International in Diamond Bar, CA.

The FMC alleged that City Ocean Logistics and City Ocean International book transportation services for cargoes at less than tariff rates and improperly utilized rates of service contracts of other companies as well as receiving forwarder compensation on export shipments in which City Ocean Logistics acted as NVOCC. In addition, CTC International unlawfully collected forwarder compensation on shipments in which City Ocean Logistics, City Ocean International and/or CTC International had a beneficial interest. City Ocean Logistics, City Ocean International and CTC International also provided ocean transportation that was not in accordance with the rates and charges set forth in published tariffs. In addition to surrendering the ocean transportation intermediary (OTI) license of CTC International, the company also made a payment off $325,000 in accordance to the allegations.

Oriental Logistics Group Limited

Oriental Logistics Group is a tariffed and bonded NVOCC located in Taipei, Taiwan. The FMC alleged the company violated 46 U.S.C. 41102(a) by knowingly and willfully obtaining ocean transportation at less than applicable rates by misrepresenting the names of shipper accounts on service contracts and by mislabeling cargoes under the contract to gain cheaper rates. Oriental Logistics Group also violated 46 U.S.C. 41104(2) by providing ocean transportation, which were in its published tariff. The company paid $100,000 in civil penalties.

Hyundai Logistics (USA) Inc.

Hyundai Logistics (USA) is a tariffed and bonded NVOCC and freight forwarder located in La Mirada, CA. The FMC alleged that the company violated 46 U.S.C. 41102(a) by knowingly and willfully obtaining transportation by providing companies to rates under signatory contract, which was not theirs. Under the terms of the FMC compromise, the company made a payment of $100,000.

Falcon Maritime and Aviation Inc.

Falcon Maritime and Aviation is a licensed NVOCC based in Jamaica, NY. It was alleged that the company violated 46 U.S.C. 41102(a) by unlawfully obtaining rebates from an ocean carrier in the form of an administrative fee, which was not identified in the service contracts of United Arab Shipping Company. The FMC fined the company  $85,000.

Sea Gate Logistics Inc.

Sea Gate Logistics is a licensed NVOCC and freight forwarder based in Valley Stream, NY. The FMC alleged that the company violated 46 U.S.C. 41102(a) by knowingly and willfully obtaining ocean transportation rates by accessing service contracts that it was not a signatory to. Sea Gate also violated 46 U.S.C. 41104(2) by providing transportation not in accordance with the rates and charges in its published tariff. Under the terms of the compromise, Sea Gate Logistics made a payment of $80,000.

The Federal Maritime Commission is the federal agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The FMC’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.